{"id":435902,"date":"2013-10-13T12:43:18","date_gmt":"2013-10-13T08:43:18","guid":{"rendered":"http:\/\/www.dubaigoldprices.com\/?p=435902"},"modified":"2013-10-13T12:43:18","modified_gmt":"2013-10-13T08:43:18","slug":"gold-drops-to-3-month-low-on-fund-trade-debt-deal-hopes","status":"publish","type":"post","link":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/2013\/10\/13\/gold-drops-to-3-month-low-on-fund-trade-debt-deal-hopes\/","title":{"rendered":"Gold drops to 3-month low on fund trade, debt deal hopes"},"content":{"rendered":"

\"Gold<\/a><\/p>\n

Gold fell 1.5 per cent on Friday to its lowest in three months as unusually large sale orders in New York futures and signs a deal might be near to avert a potential US debt default prompted jittery investors to flee the bullion market.<\/p>\n

The precious metal, generally viewed as a safe-haven investment, fell $30 (Dh110.18) an ounce in just minutes in early US trading, sparking selloffs in crude oil and copper. Friday\u2019s drop was reminiscent of a huge sell order that sent gold prices 3 per cent lower on October 1.<\/p>\n

US gold futures trading was momentarily halted at 8:42 am EDT (1242 GMT) by CME Group\u2019s Stop Logic mechanism to prevent excessive price movements. In the three minutes around the ten-second trading pause, gold prices slid almost $30, or about 2 per cent, with an unusually heavy turnover at nearly 20,000 contracts \u2014 about one-fifth of the market\u2019s volume at the time.<\/p>\n

Bullion\u2019s drop stands in sharp contrast with higher US equities and a lower dollar as other investors were encouraged by the first signs of progress by US lawmakers to end the standoff in Washington.<\/p>\n

On Friday, President Barack Obama and congressional Republican leaders moved to end their fiscal impasse but struggled to strike a deal on the details for a short-term reopening of the federal government and an increase in the US debt limit.<\/p>\n

\u201cIf there is a temporary stop-gap measure to avert a disaster of US default, it will lead to the gold market going even lower,\u201d said Jeffrey Sica, chief investment officer of Sica Wealth, which manages over $1 billion of client assets.<\/p>\n

Gold\u2019s sudden price tumble was a result of hedge funds and institutional investors flooding the gold futures market with sell orders, traders said.<\/p>\n

US Comex December gold futures settled down $28.70 at $1,268.20 an ounce by 2:27 pm EDT, with trading volume about 10 percent above its 30-day average, preliminary Reuters data showed.<\/p>\n

Spot gold was down 1.5 per cent at $1,266.80, having earlier fallen as much as 1.8 per cent to its lowest since July 10 at $1,262.14 an ounce.<\/p>\n

Friday extended bullion\u2019s drop to a fourth consecutive day, its longest losing streak since late June.<\/p>\n

For the week, the metal was down 3.4 percent, its sixth weekly decline in seven weeks.<\/p>\n

TECHNICAL BREAKDOWN<\/strong><\/p>\n

Gold\u2019s losses were triggered by a break below key support between $1,273-1,278, which represents the low from August 7 to October 2, and the neckline of a head-and-shoulder continuation pattern, said Jonathan Krinsky, chief technical market analyst at institutional trading firm Miller Tabak.<\/p>\n

Technical charts now suggest gold to fall to an area between $1,110 and $1,120, below June\u2019s three-year low at $1,180, Krinsky said.<\/p>\n

As a gauge of investor interest, the gold holdings of SPDR Gold Trust, the world\u2019s largest gold-backed ETF, dropped 0.2 per cent, or 1.80 tonnes, to 896.38 tonnes on Thursday. That marked a four-year low.<\/p>\n

Uncertainty over talks to lift the US debt ceiling in 2011 was a main driver for gold to hit record highs at above $1,920 an ounce. This year, sentiment towards bullion is much less positive, holding the metal in narrow ranges as markets largely expect the debt limit to be raised, analysts said.<\/p>\n

Among other precious metals, silver fell 1.9 per cent to $21.22 an ounce. Platinum was down 1 percent at $1,366.49 an ounce, while palladium rose 0.5 per cent to $709.22 an ounce.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gold fell 1.5 per cent on Friday to its lowest in three months as unusually large sale orders in New York futures and signs a deal might be near to avert a potential US debt default prompted jittery investors to flee the bullion market. The precious metal, generally viewed as a safe-haven investment, fell $30 […]<\/p>\n","protected":false},"author":3,"featured_media":435903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-435902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gold-news"],"_links":{"self":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/posts\/435902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/comments?post=435902"}],"version-history":[{"count":0,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/posts\/435902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/media\/435903"}],"wp:attachment":[{"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/media?parent=435902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/categories?post=435902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dxbgoldrate.com\/dubaigoldrates\/wp-json\/wp\/v2\/tags?post=435902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}